State Taxes

Call to Action: Support New York Aviation Jobs Act

March 18, 2014

NBAA strongly encourages Members in New York to support the Aviation Jobs Act which the state Senate has included as part of their proposed budget (Senate bill 6359C, Part XX). This measure would exempt general aviation aircraft purchased in New York from sales and use tax as is done in neighboring states.

With the Aviation Jobs Act language in the Senate budget, it is critical Members contact their legislators now as a joint conference committee is being convened to finalize the budget. To achieve success, the Aviation Jobs Act must be included in the final budget report from the conference committee.

For the past few years, NBAA has been working with a coalition of local/regional groups in New York to build support for this legislation and taking advantage of that support during this legislative session is important. The enactment of this legislation could increase jobs in New York, thus fulfilling the Jobs Creation Act, generate additional indirect tax revenue, increase the number of registered aircraft and increase fuel flowage.

The advocacy efforts of aircraft operators and companies doing business in New York will be key to moving this measure into the final budget. State legislators need to hear from local constituents about the positive economic benefits of this legislation. While NBAA is continuing to advocate for passage of the Aviation Jobs Act, when legislators hear directly from their own constituents in New York the message is more powerful.

It is critical that Members contact their elected officials now and request that the aircraft sales tax exemption be included in New York’s final 2014 budget.

Member Action

When contacting State Senators and Assembly Members, Members should explain that this legislation will encourage aircraft operators and aviation companies to locate in New York generating additional job growth and actually adding to the tax base. The legislation will also make New York competitive with other states that already exempt aircraft purchases from sales/use tax.

Since the sales tax exemption for the maintenance and repair of aircraft was enacted in 2004, New York has attracted significant investment in aviation services. A recent study by the New York State Department of Taxation and Finance demonstrates that this tax exemption has been a tremendous success, resulting in an expansion of aviation maintenance and repair businesses, the creation of jobs in New York and an increase in state tax revenue.

States such as Massachusetts and Connecticut have also seen an increase in aviation activity and additional tax revenue after implementing similar exemptions. In Massachusetts, a similar aircraft exemption enacted in 2001 has helped increase number of based aircraft in the state by 40 percent. These additional aircraft have produced a positive economic impact and created additional jobs.

NBAA and NYAMA Action

Since this legislation was introduced, NBAA and the New York Aviation Management Association (NYAMA) have been working directly with legislators and New York based-Members to build support for the Aviation Jobs Act. The following actions have been performed:

Coordinated with bill sponsors to determine how NBAA Members can best support the bill.

Provided data to legislators on the economic benefit that business and general aviation provides to New York.

Communicated directly with local/regional groups such as NYAMA to support the legislation.

Business Aviation in New York

Business and general aviation provide the following economic benefits to New York:

Across New York State, aviation supports more than 394,500 jobs with a total payroll of more than $18 billion.

According to New York Department of Transportation, the economic impact of general aviation airports is $1.06 billion.

There are 90 public-use airports that are used by 17,449 pilots and 6,457 general aviation aircraft.

New York State also produced a report on the benefits of aviation, review the report.